Congressman Urges Economic Investigation of GIPSA Rule

Rep. Jack Kingston (R-GA) has called for a sound economic analysis to judge both the need and the use for a proposed USDA Grain Inspection, Packers and Stockyards Administration (GIPSA) rule on the procurement of livestock

Congressman Urges EconomicInvestigation of GIPSA Rule Rep. Jack Kingston (R-GA) has called for a sound economic analysis to judge both the need and the use for a proposed USDA Grain Inspection, Packers and Stockyards Administration (GIPSA) rule on the procurement of livestock.

“In my view, it is unprecedented for a federal agency to propose such a wide-sweeping regulation and not conduct an economic analysis,” Kingston says in a letter to U.S. Department of Agriculture Secretary Tom Vilsack. “I am concerned that despite Congress having appropriated $13 million in the current fiscal year for the USDA Office of the Chief Economist, GIPSA has seemingly ignored this resource to analyze the proposal.”

Besides a lack of economic analysis, Kingston says there are other questions that have been raised about the rulemaking process that require immediate action. Some view the agency circumventing the intent of Congress and carefully choreographing efforts by the agency and others within the USDA to lobby Congress, press, industry and public officials on the proposed rule.

“…Anyone who witnessed the recent Livestock, Dairy & Poultry Subcommittee hearing on the administration’s proposed rule got the message that there are broad, bipartisan concerns that the proposed rule goes far beyond the scope of the 2008 farm bill, lacks a sound economic analysis necessary to judge both the need and utility of the proposed rule and may be the result of a flawed rulemaking process,” he says.

“I am troubled that while the USDA and the Department of Justice are in the midst of conducting a series of workshops throughout the nation to gather information on a range of topics addressed by this proposal, USDA has chosen to focus its resources on efforts to promote this regulation rather than carefully consider the consequences, intended and unintended, particularly for those it purports to protect – producers,” Kingston concludes.